What does a Surplus mean?

Discussion in 'Economics' started by RGLD, Apr 25, 2017.

  1. RGLD

    RGLD

    I was reading Victor Niederhoffer's book ( I think he was on this forum at one point) and he said something that I can't wrap my head around.

    He mentions that a if the Japanese Trade Balance Surplus is lower than expected, there the US will not devalue the dollar to save American Jobs.

    I know this does play some kind of fundamental role in USD/JPY but I can't wrap my mind around it. Can somebody please explain how a bashing the dollar down would help a Japanese surplus to save American jobs?
     
  2. Same dollar manufacture input with lower USD vs. JPY = cheaper US goods for Japanese consumers with the same domestic profits in US.
     
  3. +1

    And Japanese goods are more expensive for American consumers.